MEDIA RELEASE
For Immediate Release
Business confidence shows marginal increase for July - Report: Mackay Goodwin Business Strength and Solvency Index (BSSI)
Sydney, 17 July, 2024 - Mackay Goodwin’s latest monthly Business Strength and Solvency Index (BSSI) figure for July shows a promising, albeit marginal increase in business sentiment to 56.42% from June's figure of 56.41%.
The monthly figure is calculated using a proprietary equation that factors in key economic indicators, providing a comprehensive snapshot of the Australian business landscape.
Some of the standout factors contributing to a slightly more positive outlook for July include:
▪️ Australia's NAB business confidence index surged to 4 from an upwardly revised -2 in the previous month. It's the highest level since January 2023, due to an increase in seven out of eight industries including manufacturing and wholesale.
▪️ Australia's Westpac-Melbourne Institute Consumer Sentiment index fell to a six-month low of 82.7, contrasted from the 1.7% rise in June. It was the fifth time of decline so far this year as fears of persistent inflation and higher borrowing costs offset any boost from tax cuts and other fiscal support measures.
▪️ In the RBA June meeting, the central bank showed continued concerns regarding increasing inflation risks.
Quote, Founder and Managing Director of Mackay Goodwin Domenic Calabretta:
“The BSSI increase for July is marginal, with the RBA remaining vigilant that the window to return inflation to target, in a reasonable timeframe, without any increases in unemployment numbers, is becoming narrower.
“While NAB’s business confidence index shows an upsurge in confidence between May and June, sitting at the highest level since January 2023, that figure is offset by Westpac’s consumer sentiment index, which has seen a fall to a six-month low.
“It was the fifth decline in consumer sentiment for 2024 with concerns about ongoing inflation and higher borrowing costs negating any consumer confidence gained from recently announced tax cuts and other fiscal support measures.
“In short, the cost of living is continuing to bite, with financial market analysts predicting a one-in-three chance the Reserve Bank will use its August 5-6 meeting to lift the official cash rate to a 13-year high of 4.6 per cent. The increased cost of living is causing thousands of Australians to seek financial help.”
Calabretta also commented that while the ASX is also tracking at an all-time high,
business insolvency appointments are also at a record high.
“While the ASX figures show we have a strong economy, increasingly high insolvency figures are relaying another story.”
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Separate Attachment - BSSI graphic
About us:
About Mackay Goodwin: Founded by CEO Domenic Calabretta, Mackay Goodwin is one of Australia’s leading insolvency and restructure businesses and has carved a niche successfully working with stakeholders in distressed businesses. It has also launched its business advisory sector to assist companies of all sizes at every stage of their life cycle.
The company handles everything from complex restructures and recoveries for listed companies and on behalf of various financial institutions to advising SMEs and finding the most appropriate business solution that works for all parties.
Contact details:
For Further Information – Fiona_hamann@hamanncommunication.com or 0415 191 659
